BMO Nesbitt Burns
1501, ave. McGill College
The Right Mix for Retirement
wisdom dictates that as investors approach retirement their portfolio's
asset mix should become more conservative. At first glance this
appears to be reasonable, however, for many investors it may not be
quite so clear-cut.
Based on World Health Organization (WHO)
estimates (as of 2002) 60-year old Canadian men and women can expect to
enjoy a healthy life until 76 and 79, respectively. This information
helps to reinforce what many of us already know; our retirement years
are incresing as life expectancy rates improve. What does this mean for
you? The assets you have accumulated during your working life will
need to support you for longer than previous generations of retirees,
and perhaps longer than you have anticipated.
As with any change
in personal circumstances investors should assess their needs and goals
as they approach retirement to determine what, if anything, needs to be
done to position their portfolios accordingly. Generally speaking, most
investors entering retirement will likely look to their investment
assets as a source of income. Faced with a retirement of 20 years or
more, many individuals entering this stage of their life are likely
faced with the competing needs of balancing income with future growth in
order to fund their retirement for some time. Depending upon
individual investment objectives prior to retirement, this could mean a
significant shift in investment strategy and a move to include
conservative income-oriented investment vehicles. For others it could
be as simple as fine-tuning their existing investment strategy.
best solution for you will be to ensure combination of stocks, bonds
and cash in your portfolio is appropriate for your investment goals and
risk tolerance. I can work with you to make certain you have a sound
investment plan, which includes a well-diversified portfolio that is
regularly rebalanced and incorporates your changing needs to help you
achieve your long-term investment goals.
Please do not hesitate to contact us, should you have any questions or comments.
1(Source : The Right Mix for retirement, by Martha Hill)
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used under licence. "Nesbitt Burns" and "NaviPlan" are registered trade
marks of BMO Nesbitt Burns Corporation Limited, used under licence.